A Simple Strategy To Help You Save On Your Living Expenses During Retirement
Several retirees have understandable concerns about how best they can survive on their assets through the duration of their retirement. As a result, a lot of them are relocating overseas since several countries provide them with accessible healthcare and affordable housing. A core concern that gets a lot of people anxious when they think about retirement is money, and particularly how they will pay for their health care.
Rather than sitting back home and thinking up how to reduce costs, moving overseas might be a better alternative. By moving overseas, an InternationalLiving.com report revealed that one could save a whole lot of money on the daily living expenses. The study which surveyed a lot of couples found that people could get access to less expensive health care, cheaper travel, cheaper housing, and even cheaper luxuries by relocating to some places.
Factors To Consider
According to Ed Staton and his wife Cynthia, relocating to Ecuador helped to resuscitate their retirement savings that had been adversely affected by the 2008 financial crisis. One luxury which they probably would have been unable to afford if they were in the US is a housekeeper that comes in weekly. They have written a lot of books concerning their stay in Ecuador. Their regular routine includes manicures, pedicures, massages and facials which a lot of people enjoy only on special occasions.
In addition, Ed Staton stated that they have been able to get massive discounts on daily costs. He said housing is considerably cheaper and they rent their apartment (a luxurious penthouse) which has four bedrooms and four and a half bathrooms for only 700 dollars per month.
However, it is pertinent to note that even though English might be enough for communication in your new environment, you might still need to learn the fundamentals of the language in your new location. Expat Info Desk states that it aids integration. In addition, you should consider the category of visa best suitable for your situation. Gringos Abroad hinted, for example, that Ecuador has 7 different kinds of visas for those who are permanent residents.
Healthcare is also an important consideration. Staton mentioned that they have a health insurance premium which is $81 for each month. The insurance is for a full coverage with no deduction or restriction for pre-existing conditions or age.
The Statons have a monthly budget which isn’t up to $2,000 and they said they afford all their expenses using only their Social Security. Thus, there is no need to dip into their savings and that allows growing and compounding interest.
Also, there are generous investment returns for those living abroad. According to Staton, making use of a local financial firm, they have a year CDs that are government insured which earns them 9.5% yearly. Staton mentioned the importance of having a substantial amount of savings for unexpected or emergency expenses.
Bill and Amy Keane always had the dream of seeing the world upon retirement because they had busy careers which left them with a limited vacation time. Amy Keane mentioned that they had been successfully living the dream for close to seven years.
Before they made the decision to relocate to Cuenca, they visited Ecuador on two different occasions. On each of the trips, they met with visa attorneys, insurance brokers, realtors as well as other expats. The trips were more of research than vacations. It was easy for them to transition because the country makes use of the US dollars and the cost of living is low.
The locals in Ecuador are also very welcoming but they said they longed for the beach and the high altitude in the region got tiring and that prompted their decision to relocate. They went around France, Portugal, and Spain before they ended at Cascais which is also called Portuguese Riviera.
Keane said that with a relative bargain in Ecuador, you can use between $50,000 and $60,000 to support anything you like.
Keane mentioned that there is a possibility that other expats have a higher cost of living than them while there are others who would spend less. He said that the most expensive area to reside in the whole country is Estoril.
They, however, said comparing their current living costs with what it was when they were still in the U.S. about 7 years ago isn’t easy. One reason first is that both of them were still working. Also, Keane said he would imagine that the costs of health care would be substantially more in America regardless of Medicare.
They pay a little above 3,000 euros which are approximately $3,400 yearly for their private healthcare insurance. He added that the coverage is complete and excellent.
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